Vocabulary/DefinitionsProduct– Something that a company makes – X Box, IPad
Supply– Products a company has to sell
Demand– Products people want to buy
Natural Resource– Products made in nature – water, wood
Human Resource– People
Capital Resource– Equipment – Pizza Oven in Dion’s, a factory building
Financial Resource– Where companies go to get money - Bank loan
Goods– Companies that sell a product – Apple Store sells IPads, IPods. Barnes and Noble sells books
Services– Companies that sell a service – car wash, Doctors
Sales minus Cost = Gain or loss
Sales– Products that a company has sold
Cost– Amount of money spent to make a company’s products
Gain– Amount of sales is greater than the cost
Loss– Amount of sales is smaller than the cost
Cash Flow– Cash that a company has to spend on costs
No Cash Flow = A company could go out of business
Savings– Money saved by a company to help pay bills
Spending– Money spent to pay a company’s bills
If Spending > Savings a company could go bankrupt/out of business
Just in Time Inventory – Inventory Ordered as it is
needed – reduces costs, but may slow down building of the product
Warehouse Inventory – Inventory kept in a warehouse –
Increases costs, but speeds up building of the product - Warehouse Inventory may become obsolete